The recent trend of $DOGE has been weak, with prices hovering around $0.1685, consistently failing to break through the key resistance level of $0.1880. Market sentiment has fallen into a slump, and many retail investors have begun to panic sell. However, upon closer inspection of the market, we may discover different signals—the current price fluctuations could very likely be the market leaders quietly positioning themselves, and this base-building characteristic is quite similar to the technical patterns observed before the astonishing rally in 2021.
From a technical indicator perspective, the MACD has shown signs of a bullish divergence, and the RSI has also entered the oversold territory, indicating that a rebound may be brewing. Especially if the price can effectively break through the short-term resistance level of $0.1780, it could very likely trigger a decent rebound, with the first target looking towards the psychological level of $0.2. Of particular note is the on-chain data—recent large transfers have been frequent, multiple whale addresses are continuously accumulating, and the supply of Dogecoin on exchanges has noticeably decreased. These signs all indicate that the main capital is quietly accumulating.
However, we must also maintain a clear understanding. Currently, the market is thinly traded, and the number of active addresses on-chain is far from historical highs, indicating that overall interest has not fully recovered. If the key support level of $0.16 is breached, it is possible for prices to further drop to around $0.145. A true trend reversal will require more capital to enter the market and the restoration of investor confidence. Nevertheless, this current position already possesses a favorable risk-reward ratio, and it may very well be a good opportunity to position for the next round of market movements.
The market continues to change, and we are closely monitoring it to seize new entry opportunities. Like + comment, let's traverse the bull market together and firmly grasp this major opportunity.
